Weekly Market View from Realm Investment Management. Week ending 10th June 2022.
In the US, CPI data showed that prices rose 8.6% year-on-year in May, the highest YOY increase in more than forty years. In an attempt to control inflation, the Fed is expected to raise rates by 0.5% this week and again in July. Further out, futures markets are currently pricing in a further 0.5% hike in September. Following the release of the CPI data, US Treasury yields rose, and again today (Monday) with the 10-year treasury yield hitting its highest level since 2011.
Also today, UK GDP data from the Office for National Statistics showed that the economy contracted by 0.3% in April. The below-expectations release saw the Pound fall sharply to a 2-year low against the US Dollar.
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